Dominica – one of the classic offshore zones. Offshore firms registered there are widely used in international business. This is due to the complete absence of taxation, the absence of annual reporting demands, the simplicity and flexibility in administration, and the fact that these offshore companies are widely accepted and recognized by the international financial community. Such organizations can be engaged in any type of business not prohibited by law, with the exception of banking, trust, insurance and reinsurance activities, as well as managing third-party funds (for these types of activities, you must obtain a special license). In this article, we will take a closer look to operating of offshore banking institution in Dominica.
What Do You Need to Get Banking License?
The registration procedure in Dominica consists of several stages. Each of them requires a focused approach and a thorough knowledge of the country’s regulations. Not every executive has the right amount of time to study the regulations, so the support of a professional lawyer is required at all stages.
- Business strategy development. The work and development plan will help the department understand how liquid you are for the country’s economy, as well as the level of experience in financial activities. The plan should contain information about the origin of the initial funds, the reasons for the creation of the bank, the goals that the beneficiary wants to achieve by establishing a financial business. The planning should cover a period of operation of at least 5 years.
- Providing information about funds and beneficiaries. Each offshore monitors its reputation and does not let applicants into the country who cannot confirm their own material well-being, as well as explain the origin of their income. Recommendations and a description of the personal reputation of the applicant should be attached to the characteristic.
- Providing an extract from the bank of the country on depositing funds into the account as authorized capital. The amount of capital cannot be less than 1 million dollars; the deposit is possible both in cash and by transferring securities.
- Providing characteristics for bank employees. All specialists must be competent in their field, have an economic or banking education. The absence of a criminal record and financial cleanliness are important.
- Organization of a real representative office with a legal address and staff. Office real estate can be rented or bought.
How to Save Dominica Banking License?
- To develop representation in the territory of the Commonwealth.
- Implement a business strategy in such a way that it brings income not only to the bank, but also to counterparties, and to the state itself.
- Maintain the size of the authorized capital at the same level ($1 million) or increase it.
- Do not reduce your own liquidity level. The more expensive the business, the more popular it will be in Dominica and the more likely it is to renew the license.
- Pay for the renewal of the permit annually no later than January 15.
- Keep accounting records according to the system approved by the Ministry and provide full financial statements to the tax authorities.
Why Dominica?
- Offshore, as well as onshore, the banking sector is well regulated and respected throughout the world.
- Compared to other jurisdictions, Dominica has negligible $1 million capital requirements on the bank.
- In addition, Dominica has strict laws against money laundering and other illegal activities.
- The decision to issue a license is made within 6 months (possibly more, it all depends on the specific case)
- Dominica has a developed infrastructure, modern communications are freely available.
- Your bank in Dominica will exist in a tax-free environment.
- Dominica is a politically and economically stable member of the Commonwealth of Nations and other organizations.
Benefits of Jurisdiction
- Minimization of tax – taxation of income is either completely absent, or low rates are applied.
- Asset protection – during divorce proceedings, the likelihood of a raider takeover or takeover by competitors, etc.
- Increasing privacy – in most offshore jurisdictions, information about the true owners of the business is not available.
- In countries where a public register of shareholders is required, anonymity is achieved using a nominee service.
- Lack of currency control.
- Increasing the level of political and economic stability.
- State support for foreign businessmen at all levels.
- Minimization of bureaucratic procedures.
Level of Privacy in Offshore Dominica
The registered agent’s office keeps the following documentation: Minutes of the first meeting and Minutes of appointment of the first Director of the company, registers of Directors/Shareholders, Share Certificates, Register of pledge of movable and immovable property (if any), Declaration of Beneficial Owner and copies of passports of directors/shareholders/beneficiaries. This information is not publicly available.
In addition, the Companies Law provides for a fine of USD 25,000 and imprisonment for two years for disclosing any information about an offshore company in Dominica. This provision of the law works for any person, including a financial inspector, a civil servant or an official liquidator of a company. Any information about the company can be provided only by decision of the local court, but this requires serious grounds and evidence of the criminal activities of the company itself.
